VERIZON COMMUNICATIONS INC 8-K

What Happened

• On June 28, 2026, Verizon Communications Inc. announced a transaction agreement with BT Group plc and Jasper NewCo Limited to form a 50/50 joint venture (NewCo) combining each company’s international wireline connectivity and managed network services businesses.
• Verizon will contribute the equity interests of its international wireline business to NewCo, will receive 50% of NewCo’s equity, and will make a cash payment of $625 million to NewCo (to be distributed to BT). The deal includes customary cash adjustments for cash, net working capital and indebtedness at closing and is subject to regulatory approvals and closing conditions.

Key Details

• Date of agreement: June 28, 2026.
• Verizon cash payment: $625 million (paid to NewCo and onward distributed to BT).
• Expected Q2 2026 hit: Verizon classified the contributed business as held for sale and expects an estimated loss of $700 million to $800 million in Q2 2026.
• Other Q2 2026 items: severance charges of $350 million to $450 million and asset rationalization charges of $200 million to $300 million related to ongoing transformation initiatives.
• Verizon expects the transaction to be accretive to Verizon Business Group EBITDA in Q2 2026 because the contributed assets were moved from Verizon Business Group to Corporate and other.

Why It Matters

• This creates a large, equally owned joint venture between two major global telecom providers focused on international wireline and managed network services, which could reshape Verizon’s international business footprint.
• For investors, the filing signals near-term financial impacts: a sizable one-time estimated loss ($700–$800M) and additional restructuring and asset charges in Q2 2026, offset by expected EBITDA accretion for the Verizon Business reporting unit.
• The transaction still requires customary regulatory approvals and closing conditions, so timing and final financial adjustments remain subject to change.